PREQUALIFICATION DOCUMENTS FOR AWARD OF THE … · thermal power plant of estimated capacity of...
Transcript of PREQUALIFICATION DOCUMENTS FOR AWARD OF THE … · thermal power plant of estimated capacity of...
PREQUALIFICATION DOCUMENTS FOR AWARD OF THE CONCESSION FOR EXPLOITATION OF COAL
FROM THE MAOČE BASIN, CONDITIONED BY THE CONSTRUCTION OF A THERMAL POWER PLANT OF ESTIMATED CAPACITY OF 500MW
November 2009
Contents
PART 1 – PREQUALIFICATION PROCEDURE ......................................................... 4 Section I: Prequalification Public Notice .................................................................. 4 Section II: Instructions to Tenderers .......................................................................... 9
1. General part .......................................................................................................... 9 1.1 Project description ......................................................................................... 9 1.2 Prequalification Public Notice ...................................................................... 9 1.3 Expenses .......................................................................................................... 9
2. Conditions for participation in the Prequalification Competition................ 9 2.1 General conditions ......................................................................................... 9
3. Prequalification Application preparation ...................................................... 10 3.1 Prequalification Application form, signing, closing and marking . 10 3.2 Prequalification Application language ............................................... 13 3.3 No price information ............................................................................. 13 3.4 Applicant suitability conditions .......................................................... 13 3.5. Prequalification Criteria ............................................................................. 13
3.5.1. Financial criteria ..................................................................................... 13 3.5.2. Technical criteria .................................................................................... 14 3.5.2.1. Experience in electricity generation from a coal-fired thermal .......... 14 power plant....................................................................................................... 14 3.5.2.2. Experience in coal mine exploitation and management ................... 14 3.5.3 Criteria to be met if the Applicant is a consortium ........................... 14
4. Application contents .......................................................................................... 15 4.1. Suitability Envelope contents .................................................................... 15
4.1.1 Suitability Envelope is to contain the following documentation: ............ 15 4.1.2. Joint participation - Consortium ............................................................ 15
4.2. Prequalification Criteria Envelope contents .......................................... 16 5. Proxy ................................................................................................................ 17 6. Clarifications ................................................................................................... 17 7. Schedule .......................................................................................................... 18 8. Submission of Prequalification Applications ............................................. 18 9. Opening, inspection, examination and evaluation of Prequalification .. 19 Applications ............................................................................................................ 19
9.1 Procedure phases ................................................................................... 19 9.2 Opening and inspection of the Main Envelope and separate envelopes............................................................................................................................... 19 9.3 Opening of Suitability Envelope and inspection of documentation
contained therein................................................................................................ 20
9.4 Minutes .................................................................................................... 21 9.5 Opening of Prequalification Criteria Envelope, inspection,
examination and evaluation of documentation contained therein ............. 21 10. Applicant Notification and Invitation to submit Tenders ................... 23
10.1 Applicant Notification ........................................................................... 23 10.2 Compliance with Suitability and Qualification Conditions by
Qualified Tenderers ........................................................................................... 23 10.3 Details related to submission of Tenders ........................................... 23
11. Consortiums for submission of Tenders ................................................. 24 PART 2 – SCHEDULES ................................................................................................. 25
Prequalification Application Forms ........................................................................ 25 Form 1 – TENDERER GENERAL INFORMATION ......................................... 25 Form 3- COMPLIANCE WITH PREQUALIFICATION CRITERIA ............. 28 Form 4 - PROXY ..................................................................................................... 32 Form 5 – STATEMENT UNDER CRIMINAL AND MATERIAL LIABILITY................................................................................................................................... 34
PART 3 ............................................................................................................................. 35 – PROJECT DESCRIPTION .......................................................................................... 35
1. Concession area .............................................................................................. 35 2. Recommendation related to the maximum capacity of the new thermal
power plant ............................................................................................................. 35 3. Concession Term ............................................................................................ 36 4. Concession Fee ............................................................................................... 36 6. Coal Reserves and Quality............................................................................ 38 7. Information on property rights .................................................................... 40 8. Electricity and electricity market regulatory framework ......................... 41 9. Energy sector features ................................................................................... 42 10. Transmission system ................................................................................. 43 11. Data Room ................................................................................................... 44 12. Environmental protection ......................................................................... 44 13. Business benefits of capital investments in Montenegro ..................... 45
PART 1 – PREQUALIFICATION PROCEDURE
Section I: Prequalification Public Notice
Pursuant to Articles 21 and 38 of the Law on Concessions (Official Gazette of
Montenegro 08/09), the Ministry of Economy announces
PUBLIC NOTICE
OF PREQUALIFICATION COMPETITION FOR AWARD OF THE CONCESSION FOR EXPLOITATION OF COAL FROM THE MAOČE BASIN,
CONDITIONED BY THE CONSTRUCTION OF A THERMAL POWER PLANT OF ESTIMATED CAPACITY OF 500MW
The Ministry of Economy of Montenegro (hereinafter: the Ministry) hereby
invites all interested tenderers to submit applications for prequalification
competition (hereinafter: the Prequalification Application) for the award of the
concession for exploitation of coal in the “Maoče” basin, the Pljevlja
Municipality, conditioned by the construction of a thermal power plant of the
estimated capacity of 500MW (hereinafter: the Project). The Concession Contract
shall be awarded through an international, transparent and competitive, two-
stage tender procedure, in accordance with the Montenegrin law (hereinafter: the
Tender).
1. Concession subject matter description
The subject matter of the concession is the exploitation of coal in “Maoče” basin,
the Pljevlja Municipality, conditioned by the construction of a thermal power
plant of estimated capacity of 500MW.
The Maoče Basin is located in the north-east part of Montenegro, with the air
distance of about 15 km from Pljevlja. The square area covered by this concession
is 14.5 km2.
2. Main Document basic elements
The main document “Concession for exploitation of the mineral resources of
brown-lignite coal in the Maoče basin, the Pljevlja Municipality” (hereinafter: the
Concession Act) was adopted in accordance with the Law on Public Sector
Participation in Delivery of Public Services (Official Gazette of the Republic of
Montenegro 30/02).
Since the Law on Concessions (Official Gazette of Montenegro 8/09) has been
passed, the awarding procedure of the subject concession shall be implemented
in accordance with this Law and enabling regulations.
3. Public competition procedure
The two-stage public competition procedure is set forth by the Decree on
detailed procedure for implementing the public tender procedure in an open and
two stage concession award (Official Gazette of Montenegro 67/09) and the
Prequalification Documents. The documents containing the details on the
prequalification procedure (hereinafter: the Prequalification Documents) shall
be available at the premises of the Ministry and on its web-site
www.minekon.gov.me . Successful download of the mentioned Prequalification
Documents from the web-site is to be immediately confirmed by an e-mail to the
address: [email protected]. Such confirmation is necessary so that the
interested Applicants could be registered and included into the list for
distribution of notifications, questions and answers.
4. Prequalification criteria
Any company or other legal entity or consortium (hereinafter: the Applicant) is
entitled to participate in the Public Prequalification Competition. The Applicant
is to fulfil the prequalification criteria consisting of financial and technical
criteria.
4.1. Financial criteria a) Applicant’s revenues must exceed the amount of EUR 500 million or its
equivalent in other currency annually for the last 3 business years;
b) Applicant’s total assets must exceed the amount of EUR 1.5 billion or its
equivalent in other currency for the last business year;
c) Applicant must be awarded the credit rating of no less than “BBB minus” by
Standard and Poor’s or Fitch, or “Baa3” by Moody’s;
Applicant has to fulfil the financial criterion referred to in item 4.1. indent a) and
one of the financial criteria referred to in the same item indent b) or c).
4.2. Technical criteria 4.2.1. Experience in the electricity generation from coal-fired thermal power plant a) The quantity of electricity generated from the coal-fired thermal power
plant by the Applicant may be no less than 6,000 GWh per year for the last 3
business years.
b) Applicant has under its ownership coal-fired thermal power plants of the
total installed capacity of no less than 1,000MW.
4.2.2. Experience in exploitation and management of coal mines The quantity of coal produced by the Applicant may be no less than
2,000,000 tons per year during the last 3 business years.
The Applicant must fulfil all technical criteria.
Fulfilment of criteria if the Applicant is a consortium In the event that the Applicant is a consortium, the Consortium Lead Member
needs independently to fulfil:
1. Financial criteria referred to in item 4.1 indent a) and one of the criteria
referred to in the same item indent b) or c); and
2. One of the Technical Criteria referred to in item 4.2.1 indent a) or b).
5. Prequalification Application submission deadline
The Applicant may submit the Prequalification Application in person to the
archive of the Ministry or via mail to the following address:
Ministarstvo ekonomije /Ministry of Economy/,
Rimski trg 46, Podgorica,
Crna Gora
Applications are to be submitted in Montenegrin and English as specified by the
Prequalification Documents.
End date for submission of Prequalification Applications is 6 February 2010, until 12 am (local time).
Submitted Prequalification Applications shall be opened in public on the same
day at 2 pm, local time, in the premises of the Ministry. The procedure of
opening the applications shall be implemented by the Tender Committee
appointed by the Ministry. Authorized representatives of applicants may be
present at the opening of the Prequalification Applications.
Applications that arrive after the End Date for submission of applications shall
not be considered, and shall be returned to the Applicant unopened.
Detailed description of the preparation, contents and procedure for submission
of the Prequalification Application is explained in the Prequalification
Documents.
6. Public Competition Procedure for Qualified Tenderers
Applicants that fulfil the defined conditions and criteria of the prequalification
procedure, prescribed by this Public Notice and Prequalification Documents,
shall be nominated as the tenderers qualified for submission of tenders
(hereinafter: the Qualified Tenderers). The Qualified Tenderers shall be invited
to submit tenders for the Project. The Qualified Tenderers shall be delivered the Concession Act and shall be
enabled to purchase the tender documentation that will, inter alia, define how
and when the locations may be visited, the contents of the tender, the deadline
for submission and withdrawal of submitted tenders, the data on the amount
and type of the deposit, or the guarantee and the period it is required for, the
conditions, deadlines and manner for returning the deposit, or guarantee.
7. Amendments to the Public Notice
Potential amendments to the Prequalification Public Notice shall be published in
the same way as the original text of the Prequalification Public Notice. In that
case the deadline for submission of applications shall be extended by the period
lapsed from the publication date of the same in the Official Gazette of
Montenegro until the date of the amendment.
The Ministry reserves the right to cancel or declare the Tender unsuccessful at
any phase of the procedure.
8. Contact persons and additional information
Any question and/or request for additional information regarding the Tender is
to be delivered to the Ministry via e-mail to the following address:
Contact persons:
MA Vladan Dubljević,
tel: + 382 20 482 106, fax: + 382 20 234 027
Vesna Bracanović
tel: + 382 20 482 217, fax: + 382 20 234 027
Section II: Instructions to Tenderers
1. General part
1.1 Project description
The Ministry of Economy of Montenegro (hereinafter: the Ministry) hereby
invites all interested tenderers to submit prequalification applications
(hereinafter: Prequalification Application) for award of the concession for
exploitation of coal from the Maoče basin conditioned by the construction of a
thermal power plant of estimated capacity of 500MW (hereinafter: the Project). Concession Contract shall be awarded through an international, transparent and
competitive, two-stage concession award procedure, in accordance with the
Montenegrin law (hereinafter: the Tender).
1.2 Prequalification Public Notice
This Prequalification Documents have been produced in accordance with the
Prequalification Public Notice that was published in the Official Gazette of
Montenegro 73/09, the Pobjeda, daily newspapers printed and distributed in the
whole territory of Montenegro, the international economic newspaper Financial
Times and on the web-site of the Ministry of Economy (www.minekon.gov.me )
(hereinafter: Prequalification Public Notice). The official date of
Prequalification Public Notice announcement is the day of its publication in the
Official Gazette of Montenegro.
1.3 Expenses
The Applicant shall bear its expenses related to preparation and submission of
the Prequalification Application.
2. Conditions for participation in the Prequalification Competition
2.1 General conditions
2.1.1 Any business organization or other legal entity or Consortium
(hereinafter: Applicant) is entitled to take part in the procedure in respect
of the Prequalification Public Notice.
2.1.2 In the case when the Applicant is a Consortium, the Consortium members
are jointly liable for observing the Tender rules, laws and regulations
governing the Tender, including subsequent amendments thereof. Every
Consortium will appoint and authorize one (1) lead member (hereinafter:
the Lead Member) to represent and irrevocably bind all the Consortium
members in all the issues relevant to the Tender, including but not limited
to the submission of the Prequalification Application in the name of the
Consortium.
2.1.3 One business organization or other legal entity may take part in two or
several Prequalification Applications neither independently nor as a
Consortium member.
2.1.4 The Applicant or Consortium member may not have control over another
Applicant or Consortium member. For the purpose of this definition,
”control“ means to manage or have majority votes and majority
presentation in the Shareholder’s Assembly (or other equivalent body).
2.1.5 In order to take part the Applicant shall fill in the Form 1 or 2, as
applicable.
3. Prequalification Application preparation
3.1 Prequalification Application form, signing, closing and marking
3.1.1 Prequalification Application shall include all the documents mentioned in
items 4.1 and 4.2 that are to be placed in two separate envelopes:
− the first, with clearly indicated words “Suitability Envelope“, which
will contain the documents required for establishing the suitability
of the Applicants referred to in item 4.1.1, or 4.1.2 in case of a
consortium (hereinafter: Suitability Envelope). Documents to be
delivered in the Suitability Envelope will be submitted in the
original language of the country where the Applicant is
headquartered, with the requirement for certified translation into
Montenegrin and English to be submitted as well; and
− the second, with clearly indicated words “Prequalification Criteria
Envelope“ which will contain documents required for establishing
whether the prequalification criteria referred to in item 4.2 have been
met (hereinafter: Prequalification Criteria Envelope). Documents
to be delivered in the Prequalification Criteria Envelope will be
delivered in the original language of the country where the
document is issued, with the requirement for certified translation
into Montenegrin and English to be submitted as well.
3.1.2 Every Applicant shall prepare and submit the original and one
counterpart of the Prequalification Application in separate envelopes, of
which each will contain a Suitability Envelope and a Prequalification
Criteria Envelope, where the envelope containing the original of the
Prequalification Application will be marked as ”Original”, and the
envelope containing the counterpart of the Prequalification Application as
“Counterpart”. In case of any conflict between the counterparts and
originals, originals shall prevail. Closed separate envelopes containing the
original and a counterpart of the Prequalification Application will be
closed in one wrapping (hereinafter: Main Envelope).
3.1.3 Person or persons duly authorized to be legally binding for the Applicant:
(i) shall sign the Prequalification Application in the form given in Form
1 or 2, as applicable; and
(ii) shall initial all the pages of the original Prequalification Application,
save the pre-printed text, if existent.
3.1.4 Documents constituting the Prequalification Application may not be
amended or supplemented.
3.1.5 The Main Envelope that contains the original and the counterpart of the
Prequalification Application and inner Suitability Envelopes and inner
Prequalification Criteria Envelope is to be sent to the following address:
Ministarstvo ekonomije
Rimski trg 46, Podgorica
CRNA GORA
The Main Envelope and separate envelopes that contain the original and a
counterpart of the Prequalification Application, inner Suitability Envelope
and inner Prequalification Criteria Envelope, must include the full name
and address of the Applicant, with the indication: “Maoče Project
Prequalification Application“ and the note: Ne otvarati osim u prisustvu Tender Committee – Do not open except in the presence of the Tender Committee”. If the Applicant is a consortium, only the name and address
of the Lead Member of the Consortium is indicated. This is required as to
enable the Prequalification Application to be returned unopened in case it
has been received by the Ministry after the expiry of the deadline for
submission of Prequalification Applications.
3.1.6 If the Main Envelope is not sealed or marked as previously defined in this
item 3.1, the Tender Committee shall not be liable for any wrongful
referral or early opening of the Prequalification Application.
3.1.7 Graphic illustration of the Prequalification Application scheme:
MAIN ENVELOPE
Original Counterpart
Suitability Envelope
Prequalification Envelope
Suitability Envelope
Prequalification Envelope
Documentation referred to in item
4.1.1 or 4.1.2 in case of a consortium
Documentation referred to in item
4.2
Documentation referred to in item
4.1.1 or 4.1.2 in case of a consortium
Documentation referred to in item
4.2
3.2 Prequalification Application language
The Prequalification Application prepared by the Applicant, as well as all the
communication and documents related to the Prequalification Application, shall
be submitted in Montenegrin and English, as defined in item 3.1.1.
All the documents must be certified with the competent certification authority of
the court/public notary while the documents that originate from another
jurisdiction/abroad are to be apostillised (Convention de la Hague from 1961).
3.3 No price information
Prequalification Applications must not include the price or price lists or other
references to the price of Project implementation. Prequalification Applications
containing such price information shall be rejected.
3.4 Applicant suitability conditions
Any Applicant is entitled to participate in the Public Prequalification
Competition provided to have met the suitability conditions defined in Article
23 of the Law on Concessions (Official Gazette of Montenegro 8/09) prescribing
that the Applicant:
- is not under bankruptcy or liquidation procedure;
- has not been convicted for a criminal act committed in the course of
professional activity performance;
- has settled tax liabilities and liabilities in respect of penalties imposed in a
criminal or misdemeanour proceedings in the period of minimum three years
prior to the Prequalification Public Notice.
3.5. Prequalification Criteria
Any business organization or other legal entity, as well as a consortium
(hereinafter: the Applicant) is entitled to participate in the Public
Prequalification Competition. The Applicant is to meet the Prequalification
Criteria that consist of financial criteria and technical criteria.
3.5.1. Financial criteria
a) Applicant’s revenues must exceed the amount of EUR 500 million or its
equivalent in other currency on annual basis for the last 3 business years;
b) Applicant’s total assets must exceed the amount of EUR 1.5 billion or its
equivalent in other currency for the last business year;
c) Applicant must be awarded the credit rating of minimum “BBB minus” by
Standard and Poor’s or Fitch, or “Baa3” by Moody’s;
The Applicant must fulfil the criterion referred to in item 3.5.1. indent a) and one
of the financial criteria referred to in the same item indent b) or c).
3.5.2. Technical criteria
3.5.2.1. Experience in electricity generation from a coal-fired thermal
power plant
a) The quantity of electricity generated from a coal-fired thermal power plant
by the Applicant must be no less than 6.000 GWh annually for the last 3
business years.
b) Applicant has under its ownership coal-fired thermal power plants of total
installed capacity of 1,000MW.
3.5.2.2. Experience in coal mine exploitation and management
a) The quantity of coal produced by the Applicant must be no less than
2.000.000 tons annually for the last 3 business years.
The Applicant must meet all the technical criteria
3.5.3 Criteria to be met if the Applicant is a consortium
If the Applicant is a consortium, the Consortium Lead Member must
independently meet:
1 Financial criteria mentioned in item 3.5.1. indent a), and one of the
criteria referred to in the same item indent b) or c); and
2 One of the Technical Criteria mentioned in item 3.5.2.1. indent a) or b).
4. Application contents 4.1. Suitability Envelope contents 4.1.1 Suitability Envelope is to contain the following documentation:
a) Applicant’s general information – (Applicant is to fill in the Form 1);
b) Proxy – Applicant is to fill in the Form 4;
c) Statement under full material and criminal liability – Applicant is to fill in
the Form 5;
d) Proof that bankruptcy or liquidation procedure has not been initiated
against the Applicant;
e) Proof that the Applicant has not been convicted for a criminal act
committed in the course of professional activity performance;
f) Proof that the Applicant has settled tax liabilities and liabilities in respect of
penalties imposed in the criminal or misdemeanour proceedings in the
period of minimum three years prior the Prequalification Public Notice.
g) Extract from the court, professional or trade register of the country where
the Applicant is headquartered;
h) Proof that payments to the Applicant have not been blocked – relevant
bank statements, bank’s advice or statement on the financial suitability of a
legal entity that is the bank’s client.
4.1.2. Joint participation - Consortium
If the Applicant is a consortium, it is obliged to submit:
a) Proofs referred to in item 4.1.1., except 4.1.1 indent a), for each consortium
member, including the Consortium Lead Member;
b) Joint participation information (Applicant is to fill in the Form 2)
c) Consortium agreement or other corresponding act on business association,
which explicitly envisages that:
i. all the members of the consortium will be jointly liable for execution of the
contract, in accordance with its terms;
ii. the Consortium Lead Member will have no less than 51% equity in the
future business organization registered in Montenegro to implement the
Project (hereinafter: Project Company), provided that the Lead Member
may not transfer its shares in the Project Company prior to the expiry of
two-year (2) period from the commencement of the commercial operations
of the Project, without prior written approval by the competent authority,
which shall not be unreasonably withheld or delayed;
iii. the activities of each consortium member shall be established;
iv. that the Consortium Lead Member shall be appointed and authorized to
undertake obligations and receive instructions in the name of each
individual and all members of the consortium jointly to represent and
irrevocably bind all Consortium members in respect of all issues related to
the Tender, including but not limited to the submission of the
Prequalification Application in the name of the Consortium;
v. the implementation of the entire contract including payments shall be
carried out only with the Consortium Lead Member.
The elements of the Consortium Agreement as defined in item 4.1.2. indents i), ii)
and iii) make an integral part of the Concession Contract as the obligations of the
Concessionaire.
The proofs referred to in item 4.1.1. must not be older than ninety (90) days from
the day of the Prequalification Public Notice.
Note: If the Applicant is a foreign business organization or other legal entity, it
shall be issued the proofs referred to in item 4.1.1. indents d) to h) by the
competent authority of the country where the Tenderer is headquartered. In case
that the country where the Tenderer is headquartered does not issue the
mentioned proofs, such proofs may be replaced by the statement of the Tenderer
under material and criminal liability, or if in the country where the Tenderer is
headquartered there are no legal provisions related to statements under criminal
and material liability, the statement given before the competent judicial or
administrative authority or notary (Form 5).
4.2. Prequalification Criteria Envelope contents
The Prequalification Criteria Envelope is to contain the proofs that financial and
technical criteria mentioned in item 3.5 have been met.
Also, this envelope must contain completed Form 3 where information relevant
to fulfilment of prequalification criteria is entered. The envelope must also
contain the proofs mentioned in Form 3 to confirm the accuracy of entered data.
5. Proxy
Every Applicant, (or if the Applicant is a consortium, then every member of the
Consortium) submits a written proxy in the form given in Form 4, duly certified,
which states that the person(s) signing the Prequalification Application is/are
authorized to sign the same.
6. Clarifications
The Applicant asking for any clarification related to Prequalification Documents
or having any other requirements defined herewith, may submit the relevant
information to the Ministry in writing.
Any clarification request related to Prequalification Documents must be received
by electronic mail at the address: [email protected]. Electronic copies of
the questions from the clarification request and relevant responses, but not the
identification of the request submitter, will be sent to all Applicants who have
confirmed the receipt of Prequalification Documents as mentioned in the
Prequalification Public Notice. If similar or repeated questions are posed by
Applicants, such questions may be recorded as one and may be responded to
with a single response.
7. Schedule
The indicative schedule covering the period from the Prequalification Public
Notice to the end of the Tender (hereinafter: Indicative Schedule) is presented in
the Table below:
Indicative Schedule *
Activity Target date End date for submission of Prequalification
Applications
[6 February 2010]
Announcement of Qualified Tenderers [6 March 2010]
Invitation to submission of tenders [15 March 2010]
End date for submission of tenders [15 October 2010]
The Ministry may amend the Indicative Schedule, at its own discretion and
without prior notice to Applicants. The Ministry shall not be liable for any
consequences that may arise from the amendment of the Indicative Schedule.
The Ministry shall inform the Applicants of the amendments to the Indicative
Schedule.
8. Submission of Prequalification Applications
The end date for submission of applications is 6 February 2009 (hereinafter: End Date for Submission of Prequalification Applications).
Prequalification Applications must be accepted by the Ministry, prior to the expiry
of the End Date for submission of Prequalification Applications at the following
address:
Ministarstvo ekonomije
Rimski trg 46
8100 Podgorica
Crna Gora
9. Opening, inspection, examination and evaluation of Prequalification Applications
9.1 Procedure phases
The procedure of opening, inspection, examination and evaluation of
Prequalification Applications includes the following phases:
1) opening and inspection of the Main Envelope and separate envelopes that
contain the original and counterparts of Prequalification Applications;
2) opening of Suitability Envelope and inspection of the documents
contained therein;
3) opening of Prequalification Envelope, inspection, examination and
evaluation of the documentation contained therein.
The Tender Committee shall conduct the opening and inspection procedure at
the place and time specified in the Prequalification Public Notice.
Applicants, through their authorized representatives, are entitled to attend the
phase 1) and phase 2) of the procedure as mentioned above.
9.2 Opening and inspection of the Main Envelope and separate envelopes
At the beginning of the opening procedure the Tender Committee shall first
establish if each Prequalification Application has been accepted within the End
Date for submission of Prequalification Applications. Only the Prequalification
Applications that have been received in due time shall be opened. The Tender
Committee shall not consider the Applications that arrive after the End Date for
submission of Prequalification Applications, but shall return them to the
Applicant unopened.
Prequalification Applications shall be opened according to the sequence of their
receipt recorded in the archive of the Ministry.
After having opened the Main Envelope, the Tender Committee shall establish if
the Main Envelope contains separate envelopes with the original of the
Prequalification Application and its counterpart, and if each of them contains
duly sealed and marked Suitability Envelopes and Prequalification Criteria
Envelopes.
If, after having opened and examined the Main Envelope, the Tender Committee
finds that the Main Envelope does not contain all separate and inner envelopes
that according to this Prequalification Documents must be in the Main Envelope;
and/or the separate and inner envelopes contained in the Main Envelope are not
duly sealed or marked according to the provisions of this Prequalification
Documents, the Tender Committee shall reject such Prequalification Application
as irregular and shall not consider it in the further procedure.
The Tender Committee shall in no way be liable to Applicants and/or their
representatives if, due to the above mentioned circumstances, the
Prequalification Application has been rejected as irregular.
9.3 Opening of Suitability Envelope and inspection of documentation contained therein
The Tender Committee shall open the Suitability Envelope of such an Applicant
whose Prequalification Application has not been rejected as irregular according
to Section 9.2, inspect the documentation and establish whether the Applicant
has submitted all required documentation for determination of the suitability of
the Applicant in the required form, in accordance with the Prequalification
Public Notice and these Prequalification Documents.
If, after having opened and inspected the Suitability Envelope, the Tender
Committee finds that the Prequalification Application does not meet any of the
conditions referred to in the previous paragraph, the Tender Committee shall
reject such Prequalification Application as irregular and such Prequalification
Application shall not be considered in the further procedure.
The Tender Committee shall be in no way liable to Applicants and/or their
authorized representatives if, due to the above mentioned circumstances, their
Prequalification Applications have been rejected as irregular.
9.4 Minutes
The Tender Committee shall take Minutes on the procedure described in items
9.2 and 9.3. Authorized representatives of Applicants are entitled to present
objections in respect of the procedure and the contents of the Minutes.
The Minutes shall be signed by the Chairman and members of the Tender
Committee, as well as authorized representatives of Applicants. If any of the
authorized representatives of Applicants abandons early the procedure
described in items 9.2 and 9.3 or refuses to sign the Minutes, the Tender
Committee is obliged to state such abandoning or reasons for refusal of signing
in the Minutes.
Within three business days from the completion of the procedure described in
items 9.2 and 9.3 , the Tender Committee is obliged to send the Minutes to
Applicants, and to return irregular Prequalification Applications to Applicants in
the condition as stated in the Minutes.
9.5 Opening of Prequalification Criteria Envelope, inspection, examination and evaluation of documentation contained therein
The Tender Committee shall open the Prequalification Criteria Envelopes,
inspect, examine and evaluate the documentation contained therein without the
presence of Applicants’ authorized representatives.
After having opened the Prequalification Criteria Envelopes of such Applicants
whose Prequalification Applications have not been rejected as irregular, the
Tender Committee shall inspect the submitted documentation and establish if the
Applicant submitted all the documentation required in accordance with the
Prequalification Public Notice and Prequalification Documents.
If, after having opened and inspected the Prequalification Criteria Envelope, the
Tender Committee finds that the Applicant has not submitted all the required
documentation or such documentation does not meet any of the conditions
envisaged by the Prequalification Public Notice and Prequalification Documents,
the Tender Committee shall reject such Prequalification Application as irregular
and shall not consider it in the further procedure.
The Tender Committee is entitled to demand in writing from the Applicant to
provide clarification of the documentation submitted in the Prequalification
Criteria Envelope.
The purpose of the clarification is to explain unclear parts of the documentation
submitted in the Prequalification Criteria Envelope. Neither shall the clarification
request demand from the Applicant to amend or supplement the Prequalification
Application, nor shall the Applicant do the same within its clarification. The
requested clarifications shall be stated in the Report of the Tender Committee,
and received clarifications shall be enclosed to the Prequalification Application.
The Applicant is obliged to submit the clarification of the documentation
submitted in the Prequalification Criteria Envelope in the required form within
five business days from the receipt of the request.
The Tender Committee shall examine and evaluate the documentation submitted
in the Prequalification Criteria Envelope and establish if the Applicant has met
the Prequalification Criteria defined in item 3.5 Prequalification Documents. In
order to establish the mentioned, the Tender Committee shall examine the
information and documentation submitted by the Applicant observing the
following fact:
The Prequalification Criteria, defined in item 3.5 are based on the "Passed"/"Failed" principle for each criterion.
The Applicant whose Prequalification Application has been evaluated by the
Tender Committee as regular and to have met the Prequalification Criteria
defined in item 3.5 and other requirements referred to in Section 3 shall be
declared as "Qualified Tenderer".
The Applicant whose Prequalification Application has been rejected by Tender
Committee as irregular and/or not to have met the Prequalification Criteria
defined in item 3.5 and other requirements referred to in Section 3 shall be
declared as "Non-qualified Tenderer".
Within thirty (30) days from the day of opening of Prequalification Applications,
the Tender Committee shall submit to the Ministry the report on the conducted
procedure with the list of Qualified Tenderers and Non-qualified Tenderers, as
well as the minutes taken at all meetings.
10. Applicant Notification and Invitation to submit Tenders
10.1 Applicant Notification
After having inspected and evaluated the Prequalification Applications, the
Ministry shall:
a) notify the Applicant to have been declared a Qualified Tenderer; or
b) notify the Applicant to have been declared a Non-qualified Tenderer since
it failed to meet the Prequalification Criteria defined in item 3.5 and other
requirements referred to in Section 3 and/or its Prequalification
Application has been rejected as irregular.
Qualified Tenderers shall be notified about when, how and where Tender
Documentation can be purchased, as well as the dates for submission of tenders
related to the Project.
The Ministry shall publish the list of Qualified Tenderers on its notice board and
its website.
10.2 Compliance with Suitability and Qualification Conditions by Qualified Tenderers
Qualified Tenderer must meet suitability conditions, as well as the
Prequalification Criteria, during the whole course of the Tender till the singing of
the Concession Contract.
10.3 Details related to submission of Tenders
The details related to the submission of Tenders shall be defined in the Tender
Documentation.
11. Consortiums for submission of Tenders
11.1. The establishing of a Consortium after the prequalification and any change
of the pre-qualified Consortium are subject to a written consent of the Ministry of
Economy prior to the expiry of the deadline for submission of Tenders. This
consent may be denied (i) if due to withdrawal of members from the Consortium,
the remaining members do not meet the qualification conditions; (ii) if the level of
the share of members or the structure of the Consortium significantly changes; (iii)
if the new Consortium does not meet the Prequalification Criteria; or (iv) if, in the
opinion of the Ministry significant decrease in respect of competition might occur.
11.2 If a Qualified Tenderer wishes to establish a Consortium for submission of
the Tender, it will have to obtain a previous written consent from the Ministry. If
the Qualified Tenderer is a Consortium, it shall not be able to change the
structure of the Consortium without prior written consent from the Ministry. The
above mentioned changes made with the consent of the Ministry shall not result
in the termination of compliance with the Prequalification Criteria.
11.3 Every Qualified Tenderer shall be disabled to establish partnership (direct or
indirect) with another Qualified Tenderer without explicit written consent of the
Ministry. If a Qualified Tenderer is a Consortium, the above mentioned shall be
applicable to all members of the Consortium.
PART 2 – SCHEDULES
Prequalification Application Forms Form 1 – TENDERER GENERAL INFORMATION
Applicant information:
Name:
Business organization form:
Business registration number:
Tax number:
Headquarters:
Telephone:
Fax:
E-mail:
Primary activity:
Authorized person name:
Authorized person seal and signature:
Form 2 – GENERAL INFORMATION ON TENDERER-CONSORTIUM 2.1 Information on the Consortium Lead Member:
Name:
Business organization form:
Business registration number:
Tax number:
Headquarters:
Telephone:
Fax:
E-mail:
Primary activity:
Authorized person name:
Authorized person seal and signature:
2.2 Information on Consortium Member:
Name:
Business organization form:
Business registration number:
Tax number:
Headquarters:
Primary activity:
Authorized person name:
Authorized person seal and signature:
Note: a separate form 2.2 is to be filled in for each member of the Consortium
Form 3- COMPLIANCE WITH PREQUALIFICATION CRITERIA Subject: “Maoče“
For: Ministry of Economy of Montenegro
Rimski trg 46, Podgorica
CRNA GORA
Dear Sir/Madam
We refer to the Prequalification Documents published by the Ministry of
Economy on [date], for award of the concession for exploitation of coal from the
Maoče basin, conditioned by the construction of a thermal power plant of
estimated capacity of 500MW
1 Financial criteria fulfilment
In accordance with Section 3.5.1 of Prequalification Documents (Financial
Criteria) we submit the proof that the Applicant (or Lead Member if the
Applicant is a Consortium) has fulfilled all the mentioned prequalification
Financial Criteria.
a) Applicant’s revenues must exceed the amount of EUR 500 million or its
equivalent in other currency on annual basis for the last 3 business years;
Table 1: Financial Criteria – annual revenues
Business year
(in EUR or equivalent)
Financial data 2006
(EUR)
2007
(EUR)
2008
(EUR)
Income Statement Data
Total revenue
b) Applicant’s total assets must exceed the amount of EUR 1.5 billion or its
equivalent in other currency for the last business year;
Table 2: Financial Criteria – assets
Business year
(in EUR or equivalent)
Financial data 2008
(EUR)
Fixed assets – Balance Sheet data
c) Applicant must be awarded the credit rating of no less than “BBB minus” by
Standard and Poor’s or Fitch, or “Baa3” by Moody’s;
Table 3: Financial Criteria – Credit rating
Credit rating Rating Agency
Applicant and all Consortium Members proving the compliance with
Prequalification Criteria are to submit copies of the balance sheet and/or financial
statements for business years mentioned in the Financial Criteria 3.5.1. Financial
statements need to:
(a) reflect the financial standing of the Applicant or Consortium Member;
(b) have been audited by an authorized auditor;
(c) be complete, including all the notes accompanying financial statements;
(d) be relative to accounting periods that have already been completed and
audited (statements relative to incomplete years are not required and shall not be
accepted).
Applicant is to submit certified copies of financial statements (balance sheet,
including all the respective notes, and income statement) for three (3) years
mentioned in Table 1 herein.
2 Technical Criteria fulfilment
In accordance with Section 3.5.2 of the Prequalification Documents (Technical
Criteria) we submit the proof that the Applicant has fulfilled each of the
mentioned prequalification Technical Criteria.
Experience in generation of electricity from a coal-fired thermal power plant
a) The quantity of electricity generated from a coal-fired thermal power plant
by the Applicant must be minimum 6,000 GWh a year for the last 3 business
years.
b) The Applicant has under its ownership coal-fired thermal power plants of
total installed capacity of no less than 1.000MW.
Table 4: Technical Criteria – capacity and generated electricity
Name of the
power plant by
electricity
generator units
Net installed
capacity (MWe)
Net electricity generation (MWh)
2006 2007 2008
A) for
management
Total A:
B) under the
Tenderer’s
ownership
Total B:
Total A + B
Therefore, we confirm that, with regard to the facilities mentioned in the above
Table, there have been no material violations of the current laws or regulations
relative to the environmental protection and health and safety at work in any of
them.
Proofs for fulfilment of technical criteria – Experience in electricity generation from
a coal-fired thermal power plant:
a) As the proof of managing a coal-fired thermal power plant and producing
the mentioned electricity quantity in this respect the Applicant is to
provide:
a. Annual report on the production or
b. Report of the competent Transmission System Operator on the
energy delivered from the subject coal-fired thermal power plant
If the Applicant manages the subject coal-fired thermal power plant based
on an Operation Agreement or Management Agreement (in respect of
which it has fulfilled the criterion), it is obliged to submit these agreements.
As the proof of owned facilities, the certified copy of the title certificate from the
country where the facility is located is to be provided.
Experience in coal mine exploitation and management
a) The quantity of coal produced by the Applicant must be minimum
2,000,000 tons a year for the last 3 business years.
Table 5: Technical Criteria – produced coal
Mine name Coal production (in tons)
2006 2007 2008
Total:
Therefore, we confirm that, with regard to the coal production mentioned in the
above Table, there have been no material violations of the current laws or
regulations relative to the environmental protection and health and safety at work
in any of them.
As the proof that the Applicant produces the mentioned quantity of coal the
Applicant is to submit the Annual report on coal production.
Yours truly,
[Authorized person signature]
[Authorized signer name, surname, title]
Form 4 - PROXY
On [Date]
I witness
In the capacity of the Notary of this office
The undersigned
Mr./Mrs./Miss. [Name and surname]
In the capacity [Capacity]
Nationality [Nationality]
Passport/ID card no. [Number]
Issued by [Institution]
On [Date]
With residence at [Address]
Hereby Mr/Mrs/Miss [Name and surname] is authorized in the capacity of
[capacity] to:
a) sign and deliver to competent authorities all the documents mentioned
herein;
b) deliver and accept any document or instrument related to the documents
mentioned herein; and
c) undertake any required and ancillary actions related to any of the issues
mentioned herein including performing, certifying or executing any act or
action deemed necessary to be performed, for the purpose of completing or
other certifying of the documents indicated herein.
Hereby he/she is authorized to appoint other persons for all or a part of rights
delegated to him/her by this Proxy.
A. DATE: [Signing date]
B. PROXY ISSUER: [Applicant/Consortium Member name]
C. PROXY: [Applicant’s/ Consortium Lead Member’s
representative name ]
D. PLACE WHERE DOCUMENTS
ARE TO BE SIGNED Ministarstvo ekonomije Crne Gore
AND DELIVERED: Rimski Trg 46, Podgorica, Crna Gora
E. DOCUMENTS All documents related to Prequalification
Application for award of the concession
for exploitation of the Maoče basin, conditioned by the construction of a thermal power plant of estimated capacity 500MW
IN WITNESS THEREOF, the Proxy issuer, previously mentioned, confirms by
his/her signature this Proxy (certified by a seal) on the above mentioned date.
[Seal]
[Proxy issuer signature]
[Proxy issuer name and surname, title]
[Notary seal and signature]
Form 5 – STATEMENT UNDER CRIMINAL AND MATERIAL LIABILITY
[Date]
Subject: Maoče To:
Ministry of Economy of Montenegro
[Name and surname of the person accepting the Prequalification Application]
[Title]
Rimski trg 46, Podgorica
CRNA GORA
[Applicant’s/Consortium Lead Member’s name] hereby presents and warrants that,
to the date of this letter, [Applicant’s/Consortium Lead Member’s name] and each
member of our Consortium (if applicable):
a) has not been under the bankruptcy or liquidation procedure;
b) has not been convicted for a criminal act committed in the course of
professional activity performance;
c) has not had unsettled tax liabilities or liabilities in respect of judgments
awarded in a criminal or misdemeanour proceedings in the period of no less
than three years prior to the Prequalification Public Notice.
Yours truly,
[Authorized person signature]
[Authorized signer name, surname and position]
[Company name]
[Address]
PART 3 – PROJECT DESCRIPTION
1. Concession area
The area to be covered by the concession for exploitation of coal is about 14.5
km2. The exploitation field is framed by the contours of the polygon presented in
the map (Figure 1). It is planned that the thermal power plant should be
constructed in the area near the mine.
According to the current spatial planning documentation the Maoče region is
envisaged for exploitation of coal and clay.
Figure 1: geographic position of the exploitation area of Maoče
2. Recommendation related to the maximum capacity of the new thermal power plant
Taking into account the quantities of coal available and the standard economic
life of a thermal power plant of 40 years, the installed capacity of the future
thermal power plant is estimated to 500 MW.
The recommended solution is to construct two units (CFB) of 250 MW (2x250
MW) each with circulating fluidized-bed combustion (CFB) technology.
The estimated investment costs of the construction of the thermal power plant
including the obtaining of all required permits, designing, construction of the
thermal power plant, connecting to high voltage network of 400 kV, amount to
about EUR 750 million.
3. Concession Term
The term of the Concession Contract is 45 years, with the possibility of extension
in accordance with the Law.
The estimated period for construction of the thermal power plant is 5 years
within the Concession Term.
The beginning of the construction of the thermal power plant is 2012. Estimated
date for releasing the unit B1 (250 MW) into commercial exploitation is 2016,
while the power plant should be commercially operational with both units
(B1+B2) in 2017. The coal production will commence in 2016.
4. Concession Fee
Concession Fee for exploited coal will be calculated in the percentage amount of
revenues generated from the sale of electricity.
The amount of the Concession Fee offered by the Tenderer, in relation to the
amount of minimum Concession Fee set by the Grantor, will be one of the criteria
for evaluation of tenders in the second phase of the Tender procedure.
The way in which the Concession Fee will be calculated will be defined in more
details in the model Concession Contract.
The Concession Contract will be available to Tenderers during the course of
Tender procedure, and no later than three months prior the End Date for
submission of Tenders in the second phase of the Tender procedure.
5. Geographic position
The coal basin of Maoče is located in the north-east part of Montenegro, with the
air distance of about 15 km, or 30 km by road, from the town of Pljevlja, where
for more than 50 years there has been the tradition of mining production and
where the Thermal Power Plant Pljevlja (225 MW) is now located with
accompanying mines with open-pit exploitation.
The Maoče basin is located in the neogene basin at the altitude from 880 to 980
meters in the mountain area. Mean annual precipitations (snow and rain)
amount to 900 mm. Mean annual temperature is 70C and the number of cold
days (air temperature is below 00C) is 40 to 50 round a year.
Figure 2: Geographic position of the exploitation area of Maoče, MNE
6. Coal Reserves and Quality
The classification and categorisation of reserves developed in the Soviet Union
during 1960’s has been used in the coal reserve estimation. In general terms,
according to this classification the mineral reserves may be classified into seven
categories: fully explored reserves (A, B, C1), inferred reserves (C2), prospective
reserves (P1, P2, P3). In the decision-making process related to opening of new
mines only A, B and C1 reserves are taken into consideration. Rough mapping of
this classification and below given methodologies is as follows:
Russian International Reporting Code, JORC, etc
A, B proved resources /measured resources
C1 proved or probable resources/ indicated resources
C2 probable resources / indicated resources /inferred
resources
P1 inferred resources
P2 Recognised mineral resource (UN Framework
Classification for Reserves/Resources, code 334)
P3 no equivalent
According to the available data and the Detailed Study on Classification,
Categorisation and Estimation of Coal Reserves in the Maoče Basin near Pljevlja
(Geological Survey of Montenegro), the coal reserves in the deposit are presented
in the Table 1.1.
Table 1.1
Reserve class Reserves
Category Quantity (t) Total geological
reserves B 90,198,637 C1 33,184,675
B+C1 123,383,312 Balance reserves B 90,130,009
C1 28,752,661 B+C1 118,882,670
Off-balance reserves
B 68,628 C1 4,432,014
B+C1 4,500,642 Exploitation B 85,623,509
The State Commission for Reserves has accepted the following reserves of coal
and they are as follows:
Category B 90,100,000 tons
Category C1 19,800,000 tons
Total B+C1 109,900,000 tons
Taking into account all existent documentation and information available
presently, a consulting firm from a member-state of the European Union has
confirmed the correctness of obtained total geological reserves in the amount of
123,383,312 tons of lignite within the normal accuracy.
The Miocene coal reserves in the Maoče Basin are divided into three strata.
Exploitation reserves of upper and lower coal strata are 9.46 million tons (Table
1.2), which is 8.6% of the total exploitation reserves amounting to 112,938,537
tons.
Table 1.2: Reserves and quality of coal by stratum
Stratum
Category
Reserves (t) Specific gravity (t/m3)
Total moisture
(%)
Ash content
(%)
Sulphur content
(%)
Net Caloric Value (NCV) (KJ/kg)
Main
B 82,443,484 1.32 33.36 13.97 0.82 12,840
C1 21,038,694 1.35 30.57 16.08 0.92 12,561
reserves C1 27,315,028
B+C1 112,938,537
Coal Stratum
B+C1 103,482,178 1.33 31.20 14.40 0.84 12,983
Lower Coal
Stratum
B 2,992,563 1.50 26.22 33.20 0.84 7,681
C1 984,029 1.45 29.23 31.12 1.01 8,513
B+C1 3,976,592 1.49 26.96 32.68 0.88 7,887
Upper Coal
Stratum
B 187,462 1.59 27.64 43.92 0.62 5,838
C1 5,292,305 1.52 28.80 37.22 0.91 7,288
B+C1 5,479,767 1.52 28.80 37.22 0.90 7,238
Total
B 85,623,509 1.33 31.17 14.70 0.82 12,644 C1 27,315,028 1.39 30.18 20.72 0.92 11,394
B+C1 112,938,537 1.34 30.93 16.16 0.84 12,342
The coalmine investment costs cover the initial development costs and the costs
of mine opening, as well as subsequent costs of the mine expansion (such are the
costs of land purchase, expansion of the drainage system, etc). Investments for
the development of mine are planned to be made in 2014 and 2015.
The total anticipated investment in the mine opening is estimated to amount to
around EUR 530 million.
7. Information on property rights Based on information received from the Real Estate Administration of
Montenegro, the concession area includes the total of 610 cadastre parcels.
Counting in the fringe parcels that only partially belong to the concession area,
the total area of the space is 15 577. 86 m2. Of this:
• 11,825.49 m2 or 76 % is under private ownership,
• 3.752,35 m2 or 24 % is under state ownership.
All data relative to parcels and owners will be available in the Data Room.
By signing the Concession Contract the concessionaire acquires the right to use
land under state ownership. The purchase of private land is the obligation of the
concessionaire and the land will be purchased in phases based on the declared
public interest by the state, in accordance with the Law on Expropriation.
8. Electricity and electricity market regulatory framework
Montenegro signed and ratified in the Parliament the Energy Community of
South East Europe Treaty in October 2006 and thus has undertaken to apply
relevant EU Directives (acquis communautaire) in the area of energy, renewable
energy sources, competition and environment. Draft new law on energy whose
adoption is envisaged by the end of 2009 covers the essence of the following EU
directives in the area of electricity:
• Directive 2003/54/EC concerning common rules for the internal market in
electricity,
• Directive 2001/77/EC on the promotion of electricity produced from
renewable energy sources,
• Directive 2005/89/EC concerning the measures to safeguard security of
electricity supply and infrastructure investment
• Directive 2004/8/EC on the promotion of congeneration
Regulatory Agency declared the electricity market in Montenegro open for all
consumers except households from 1 January 2009, while the same is envisaged
for all consumers, including households, no later than 1 January 2015.
The legal framework for electricity market opening is defined by:
• The current Energy Law,
• Directive 2003/54/EC concerning common rules for the internal market in
electricity
• Regulation 1228/2003/EC on the conditions for access to the network for
cross-border exchanges in electricity, and
• Law on Ratification of the Treaty on Energy Community between the
European Community and the Republic of Montenegro.
Electricity market in Montenegro consists of the wholesale and retail market.
Electricity wholesale market includes:
• long-term market, i.e. market based on bilateral agreements,
• mid-term – day-ahead market, which is non-existent in the initial period,
but may be established at a specific stage of market development,
• short-term – balance market, and
• ex-post real-time activities – imbalance calculation and settlement.
Energy Regulatory Agency (Regulator) of Montenegro is a fully independent
institution which is inter alia legally bound to define tariff methodologies, adopt
tariffs, control the work of energy subjects according to issued licenses,
functioning, development of market and consumer protection.
The Regulator has adopted necessary acts for functioning of the market that are
compliant with the EU Directives 2003/54 and 1228/03, including:
- Rules for access of third parties to transmission and distribution network;
- Market rules;
- Rules for electricity supply.
Next step is harmonization of laws and enabling legislation with the EU “third package” directives.
In this moment EPCG is the only producer, importer and supplier of electricity in
Montenegro.
In the second semester of 2009 the Regulator completed the enabling legislation
that was required for licensing of new suppliers and vendors.
After the market has been opened, tariff consumers 1participate with about 30%
in the total electricity consumption, however, there have been no qualified
consumers that left the Public Supplier yet. Qualified consumers, namely, are
entitled, but are not obliged to come out in the free market. They may remain in
the segment of public supply as tariff consumers. So far, they haven’t been able
to do so since there have been no other suppliers, but licensed suppliers are
expected already in the middle of November.
Prices remain regulated for:
- transmission and distribution of electricity;
- system operation services by Transmission Network Operator;
- electricity that the Public Supplier takes over from domestic sources;
- electricity bought by consumers that are supplied by the Public Supplier;
With the development of the market it is expected that majority of electricity
consumption in Montenegro will be serviced through the Public Supplier which
will procure such electricity from domestic producers at the price proposed by
the producer. Qualified consumer is entitled at any time, with previous notice, to
leave the Public Supplier, and domestic producer is legally bound to supply
energy only for tariff consumers.
9. Energy sector features
The main characteristic of the energy balance in Montenegro was a significant
shortage of electricity that resulted in import of electricity.
1 tariff consumer is the consumer for which the Regulator determines the price
2006 2007 2008
Total consumption of the system GWh 4.636 4.647 4.803
Electricity generation in MNE 2.819 2.045 3.140
Net import from other systems 1.607 (35%) 2.112 (45%) 1.663 (35%)
Energy Development Strategy in MNE until 2025 (mid-term scenario) estimates
the electricity consumption growth at the rate of 1.22% which means that by 2025
the annual consumption will reach about 5.800 GWh.
Energy system maximum peak load registered during the winter months is
about 790MW, and the lowest peak load registered during the summer months,
i.e. in July is about 460MW (May - 334MW).
10. Transmission system
Prenos AD (joint stock company) which is 70% under the state ownership has
been the Transmission Network Operator since April 2009. Prenos AD performs
the activity of electricity transmission through 400kV, 220kV and 110kV network,
operates the electricity system of Montenegro (electricity transmission system
operator), as well as maintenance and development of the transmission network
at the territory of the state. In the middle of 2009 Prenos AD became a member of
the European Network of Transmission System Operators for Electricity
(ENTSO-E).
The transmission network of Montenegro is characterized with radial
structure of all the three voltages (400 kV, 220 kV and 110 kV) and
interconnection with Kosovo (400 kV), Serbia (220 kV), Albania (220 kV), and
Bosnia and Herzegovina (through 400 kV, 220 kV and 110 kV overhead power-
lines ).
A new 400 kV power line with Albania is under construction. A submarine cable
with voltage level of 500 kV DC with transmission capacity of 1,000 MW is
estimated for the needs of energy connecting of Montenegro and Italy.
Prenos AD technical services estimate that it is possible to connect a power plant
of total capacity 2x250 MW to a high voltage network of Montenegro without
prior increase of the capacity of the high-voltage network. The option with 2
units also provides for better stability of the system, enables better operational
flexibility of the power plant and better reserve for the system.
Figure 3 Electricity generation and transmission system in Montenegro with the
current interconnections with neighbouring countries
11. Data Room
Data Room shall be opened after the list of Qualified Tenderers has been
published. The access to the information from the Data Room shall be regulated
by an instruction to be delivered to all Qualified Tenderers. The fee for access to
the Data Room shall be set in the Tender Documentation.
The Data Room shall include all currently available data considered necessary
for qualitative evaluation of the Project by an interested Tenderer.
12. Environmental protection
The Concessionaire is obliged (for both the mine and the power plant) to
undertake all activities in accordance with the Law on Environmental Impact
Assessment, and in accordance with other regulations relative to the area of
environmental protection in Montenegro.
With regard to GHG emission, Montenegro is a signer of Kyoto Protocol, Annex
2.
13. Business benefits of capital investments in Montenegro
• 9% profit tax.
• Monetary stability (Euro- tender currency)
• Political stability
• Low inflation rate
• Agreement on avoiding double taxation signed with several countries
• Montenegro signed and ratified the South East Europe Energy
Community Treaty, and thus has accepted and undertaken to
transpose the relevant regulations in the area of acquis for energy
(electricity and gas), competition, environment and renewable energy
sources and thus created conditions for a single electricity market
• With the current transmission network, interconnections with
neighbours and particularly with the construction of the submarine
cable to Italy, Montenegro is becoming a very significant subject in
electricity transmission from the region to Italy as well as among the
countries in the region.